How to Pick an Agent When Flipping a House in Toronto
It’s an excellent time for flipping a house in Toronto! According to the Canadian Real Estate Association (CREA), “more than 60% of all local housing markets reported increased sales activity in June (2018) compared to May, led by the Greater Toronto Area (GTA).” So, if you can secure the help of a reputable and fair real estate brokerage, then you’re sure to come away from the deal with a sizable profit.
Many people go with the first agent they find through online searches. This can be tricky if you’re searching for an agency specializing in both buying and selling, in other words, house flips. A real estate agency that specializes in flips can add more to your bottom line and streamline the process, saving you time and money.
Knowledgeable about Flipping a House in Toronto
Real estate agents know what can go wrong when selling and buying, such as liability issues. They can help you reduce your risk, not to mention increase your profits. As a house flipper, you want to be prepared and have a good understanding of the details, terminology, and forms needed to buy and sell a home in Toronto. A knowledgeable real estate agent knows this and will offer partnering legal representatives to help, usually included in the fee. He’ll know what disclosure forms are required by law and what permits are needed before renovation begins. There are regulations related to what permits are required to flip homes. Real estate agencies will be able to research this for you and not necessarily at a high rate.
MLS Access, now Realtor.ca
Realtor, formerly the Multiple Listing Service (MLS), is a most reliable and accurate listing of properties in Canada. A real estate agency has access to it and will be able to list your home country-wide to possible buyers. If you’re not an agent, you must pay at least $1,000 to list your home on Realtor. If you flip often, then you could accumulate many fees.
Network of Support
Brokerages have several advantages such as invaluable advice and support from their network of agents. That means there is a whole group of real estate agents who can bring buyers from their networks. This expands the exposure your flip will have to more buyers. Another advantage of working with a real estate agency is that their brokerage access will make them privy to advanced notice of properties coming onto the market, in other words, possibly your next flip!
A good real estate agency will help you remember the bottom line which flippers often forget about when they overthink renovation plans. The agent can crunch the numbers for you and keep you on track financially as well as negotiate aggressively for the best deal. A tough negotiator can win you more overall profit on the flip, and that means more money for your next flip. Remember, real estate agencies have extensive knowledge of the local market prices and pricing strategy. A decent agency will also offer several services for free, such as appraisal analysts, home inspection engineers, legal representatives and so on.
Honest real estate agencies will work without conflict of interest and offer transparent fees when representing both the seller and the buyer. If your target price for selling might not be reached, there should be a fee reduction. Also, when flipping houses, you shouldn’t pay double fees. Check with your real estate agency whether they refund the realtor fee (which is paid by the seller) to the buyer.
Where to Find a Real Estate Agency for House Flips
When you call a brokerage, make sure to ask for recently reviewed agents. If it’s a currently active agent, you can also ask for references by previous house flippers. Honest client reviews are the only way to trust the quality of an agent completely. Another way to find real estate agents for your home flip is to attend a local real estate investment association or club. Real estate agents who specialize in house flipping participate in these meetings in the hopes of gaining clients. Make sure the agent can offer you more than just a comparable market analysis (CMA). They should know what ARV (After Repair Value) is and the 70 percent rule of house flipping. The 70 percent rule is that the real estate investor pays 70 percent of the ARV of the home minus the needed repairs. The ARV is what the house is worth after all of the repairs.
Again, look for an online track record of the real estate agent’s background or ask for references from previous clients. In other words, an agency that pays his agents’ commission based on client reviews would be the most reliable. Try not to make a snap judgement based on how many stars a random real estate agent has listed on his profile. The five-star rating system can vary from person to person. What one person views as five-star service may be a mere three stars to someone else, although both were satisfied with the realtor’s service. An agency has the means to check the performance of its agents thoroughly and review accordingly.
At Justo, we care about a different and fair real estate system. This is why we offer you unique content that can help you make a right and balanced decision when it comes to your home. We’re ready to help if you’d like advice in finding a trustworthy agent for flipping a house in Toronto. As residents and local real estate experts in Toronto, we’re familiar with the local system and its pain. We offer a new way of house flipping in Toronto and the GTA.